The purpose of this research activity was to investigate the issues surrounding hospitality HRM, specifically recruitment and selection, training and development and communication process, as well as quality of service, in order to increase customer satisfaction. The most important issues surrounding HRM and quality of service were investigated from three different perspectives; those of the employees, the customers and the hospitality professionals. The primary objective of my research was the development of awareness of effective HRM and quality of service in five-star hotels in Cyprus. Based on a review of related literature and information gathered from two focus group sessions (restaurant and front office employees), I also followed with quantitative research. I developed two questionnaires to collect data from hotel employees and hotel customers. Statistical research analysis was then implemented, such as means and frequencies analysis, cross tabulations in collaboration with chi-squares, Pearson correlation coefficient, factor analysis and finally regression analysis. Furthermore, qualitative research with semi-structured interviews were assigned and deployed for relevant and important hospitality professionals such as five-star hotel managers, HR directors, hotel executive directors, trade unions, hospitality consultants and so on. After a thorough analysis of all research findings I was able to clarify the issues surrounding HRM and quality of service in five-star hotels in Cyprus in relation to how HRM and quality of service can be improved. The proposed recommendations and suggestions summary, which act as a quality assurance mechanism via HRM sustainability and effectiveness, aims to enhance HRM and quality of service effectiveness in five-star hotels in Cyprus. Thus employee and customer satisfaction and loyalty are established and eventually increase the success of five-star hotels. The cornerstone of the developed recommendations and suggestions summary rests on the foundation that successful and effective HRM and quality of service in five-star hotels, is based on the commitment of all stakeholders involved.